Massage Services

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Receipts from the sales of massage services, except when medically necessary, become subject to sales and use tax on 01/01/2023.

How does a provider of massage services determine if the services are medically necessary?

For massage services to be excluded as medically necessary, the provider must receive documentation from a licensed medical practitioner authorized to issue a prescription for the medically necessary massage services. For example, a chiropractor may refer a patient to a massage provider for further treatment.

Is chiropractic treatment included under taxable massage services?

No, chiropractic care is not within the overall category of massage services.

How long will a prescription for massage services cover the services provided?

The prescription must specify the dates or timeframe for requested massage services. It is the responsibility of the massage provider to maintain the prescription documentation as proof of medically necessary services rendered. This information is needed to document why the provider did not charge sales tax on the payments for the services provided under the prescription order.

May a massage service provider accept a referral from an athletic trainer or a physical therapist as sufficient documentation for medically necessary services?

No, the massage services provider must receive documentation that includes a prescription for massage therapy from a referring medical practitioner who is authorized to issue prescriptions for massage services.

How are massage services purchased with a gift card or certificate handled, and what is the tax treatment if the card is later used at a different location out of state?

For gift cards or gift certificates exclusively for redemption for massage services, the sale for massage services is subject to sales and use tax at the time of purchase because the gift card or certificate grants the right to a taxable service. The sales and use tax on services is based upon where the customer receives the service or makes first use of the service. If the gift card or certificate is for a specific dollar amount eligible for redemption for various services or products, then the sales and use tax is imposed at the time of redemption based upon the types of services or products purchased with the card or certificate.

If a customer purchases the gift card or certificate designated exclusively for massage services and the purchase is at the business location of the massage service provider in Kentucky, then the transaction is sourced to Kentucky and is subject to Kentucky sales tax. If the customer purchases the gift card or certificate by phone or online and the gift card or certificate is designated exclusively for massage services delivered to a Kentucky address, the transaction is sourced to Kentucky and subject to Kentucky tax. If there is no physical delivery of the gift card or certificate, the transaction is sourced based upon the physical address of the customer or the billing address of the customer. See KRS 139.105 and KY Administrative Regulation 103 KAR 30:190 for additional sourcing guidance.

How is sales and use tax applied to the purchase of a spa membership that includes massage services and other additional services?

Charges for membership to a health spa have been subject to sales tax as a taxable admission since 07/01/2018 whether the membership includes massage services or not.

If the membership that includes massage services is sold by a massage provider other than a health spa, the membership is taxable if sold on or after 01/01/2023 based upon the sourcing guidance included in question #5.

Are massage services provided at a public clinic from students participating in massage therapy educational training subject to sales and use tax?

Yes, charges for massages given by students in training are subject to tax just as other receipts for massage services provided by the clinic are taxable.

How are massage service providers to report their receipts for services rendered when filing their sales and use tax returns?

Massage service providers should report their total receipts for all massage services rendered (taxable and exempt) for the reporting period on the “Total Receipts" line of the return. They should then click on the “Deductions Worksheet" tab of the return and include all medically necessary massage services listed in “Total Receipts" on the “Other" deduction line. The system will then calculate the remaining receipts subject to sales tax on the “Total Taxable Amount" line.

Are massage service providers eligible to claim a resale exemption for any of their purchases used in their business operations?

No, a massage service provider's purchases of equipment or any items consumed or used when providing the taxable services are taxable retail purchase transactions not eligible for exemption as purchases for resale.

​​Massage Services​​​

​Receipts from the sales of massage services, except when medically necessary, become subject to sales and use tax on 01/01/2023.

Sales and Excise Taxes

Receipts from the sales of massage services, except when medically necessary, become subject to sales and use tax on 01/01/2023.